Client Advisory Letter (April 2022)

At a glance

Updates, reiterations, and clarifications on selected topics

Taxes, compliance matters, assessments, and refunds

Undisputed assessment Effect of late filing of protest against a Final Assessment Notice
Point of interest Compensatory or legal interest awarded by the courts is tax-exempt
Intent to evade The 10-year prescriptive period does not apply to all false returns
Into the void An assessment can still be valid despite a void FDDA
Hospital rate Income taxation of proprietary educational institutions and non-profit hospitals
Use of PERA Additional guidelines in implementing the tax provisions of the PERA Act of 2008
Car troubles Clarifying the taxable base of excise taxes on automobiles in the sworn statement
No-contact registration Availability of Central Business Portal for online registration
Vaccine updates Updated list of VAT-exempt medicines for COVID-19 treatment and hypertension
Alignment Amending certain Q&As in RMC 24-2022 in relation to CREATE Act and its IRR
ITR attachments Clarifying the deadline of submitting attachments to the 2021 annual ITRs
PERA withdrawals Penalties for early withdrawal of qualified contributions under PERA Act of 2008
No surcharge Discontinuing the 25% surcharge on deficiency taxes in amended returns
ITR deadline Clarifying the deadline for filing annual ITRs for calendar year 2021
Using the eAFS Clarifying the use of the eAFS System
WFH issues Manner of paying the penalty for violating conditions for WFH arrangements
Sunset provision Expiration of VAT zero-rate incentive for export enterprises before the CREATE Act
CETI alternative Clarifying the submission of Certificate of Entitlement to Tax Incentives
Prescribed formats Uniform templates for VAT Zero Percent (0%) Certifications to be issued by IPAs
TCC revalidation Policies and procedures for the revalidation of tax credit certificates
Bank advisory Deadline for filing annual income tax returns for calendar year 2021
ONETT payments Acceptance of tax returns and payments without the “TIN VERIFIED” stamp